How to Save Time & Money Buying Domain Names
Step #1 - Find Out If The Name Is For Sale
There are no reliable statistics available, but it's likely that the majority, perhaps 70%+, of domain names are currently registered by resellers rather than site owners. Therefore you have a great chance of buying the name you really want, even if it has already been registered. The obvious way to find out if the name is for sale is to email the owner. You could either get the email address by visiting the website, or by looking up the owner information in the WHOIS database. But before you even consider contacting the owner, read the following very carefully. It could save you a lot of money.
What's the key word when buying domains? Anonymity!
Domain names are an abstract intellectual property, they have no fixed price and there is no standard way to arrive at a market value. The sale price is arrived at purely as a result of negotiations between the seller and buyer. As in all negotiations, the winner is the likely to be the party with the most meaningful information about the other side.
Do you really think a canny seller expects to get the same price from a fellow reseller as from a large corporation? Of course not. It's not untypical for a reseller to ask five to ten times the amount from a corporation, as compared with a fellow reseller.
So do everything you can to remain complete anonymous until the deal is done:
There are no reliable statistics available, but it's likely that the majority, perhaps 70%+, of domain names are currently registered by resellers rather than site owners. Therefore you have a great chance of buying the name you really want, even if it has already been registered. The obvious way to find out if the name is for sale is to email the owner. You could either get the email address by visiting the website, or by looking up the owner information in the WHOIS database. But before you even consider contacting the owner, read the following very carefully. It could save you a lot of money.
What's the key word when buying domains? Anonymity!
Domain names are an abstract intellectual property, they have no fixed price and there is no standard way to arrive at a market value. The sale price is arrived at purely as a result of negotiations between the seller and buyer. As in all negotiations, the winner is the likely to be the party with the most meaningful information about the other side.
Do you really think a canny seller expects to get the same price from a fellow reseller as from a large corporation? Of course not. It's not untypical for a reseller to ask five to ten times the amount from a corporation, as compared with a fellow reseller.
So do everything you can to remain complete anonymous until the deal is done:
Don't give out your full name. Use your first name, or better still, an alias.
Don't use a corporate email address. Instead, use a generic email address such as @hotmail.com or @yahoo.com.
Don't give out any other contact details.
Don't tell the seller that you plan to develop a site.
In general, say as little as possible. It's incredibly easy these days to find out information about a person on the Internet, so don't give the buyer anything to go on.
OK, now we've got the anonymity thing over with, let's get back to the plot. You need to find out if the domain name is for sale. To start with, attempt to visit the website in question. There are several possible outcomes here:
Don't use a corporate email address. Instead, use a generic email address such as @hotmail.com or @yahoo.com.
Don't give out any other contact details.
Don't tell the seller that you plan to develop a site.
In general, say as little as possible. It's incredibly easy these days to find out information about a person on the Internet, so don't give the buyer anything to go on.
OK, now we've got the anonymity thing over with, let's get back to the plot. You need to find out if the domain name is for sale. To start with, attempt to visit the website in question. There are several possible outcomes here:
- You find a working website up, with a real home page. If this is the case, chances are the name isn't for sale. But just to be sure, locate an email address on the site, or if you can't find one, guess at info@sitename.com and send a polite email asking if the name is for sale. The more "amateur" the site's appearance, the better the chances that the name is for sale.
- You get a "Site for Sale" web page back. Some resellers put up a custom "For Sale" message on the homepage, often accompanied by a form allowing you to make an offer on the name. Don't make an offer at this stage, just note that the name is available.
- You get a web page from Afternic, a domain name auction site, telling you to join in order to bid on the name. Good news, the name is definitely for sale.
- You get a web page from GreatDomains, a domain name brokerage site, telling you that the name is for sale, together with a form asking you to put an offer in on the name. Again, good news.
- You get a parking page from the registrar where the name was registered. Many registrars, Network Solutions excluded, automatically put up a web page for every site that is registered, saying something like "The future website of SiteName.com". If you come across such a web page, you are really none the wiser as to whether the name is for sale or not, so you'll need to email the site owner instead.
- You get an error message from your browser, such as "The page cannot be displayed" or "Cannot find server or DNS Error". In this case, you'll definitely need to contact the owner using WHOIS database...
Contacting The Owner Using The WHOIS Database
The WHOIS database is the central database for all the .com, .net, and .org domain names that have been registered. Here you will find information about the current owner, as well as email addresses for the admin contact, the technical contact, and the billing contact.
What you get back varies according to who the name was registered with. For instance, names registered with Network Solutions (the majority) will not show an email address for the owner! In that case, you should use the admin contact email address instead. If that proves invalid, email the technical contact instead.
Many resellers use their WHOIS entry to make it perfectly clear that the domain name is for sale. For example, they may list the site owner as "This domain is for sale" or similar. In this case, there is no need to send an email, the name is definitely for sale. You can skip to step #2.
When you send the email, keep it short and simple, remembering to use a generic email address, and don't give out your name or other contact details. Just say something like 'I am interested in purchasing the name SiteName.com. Please tell me if it is for sale, and if so, how much you are asking for it.'
If you get a negative reply, you will have to accept that this name isn't available. Otherwise, you're in business...
The WHOIS database is the central database for all the .com, .net, and .org domain names that have been registered. Here you will find information about the current owner, as well as email addresses for the admin contact, the technical contact, and the billing contact.
What you get back varies according to who the name was registered with. For instance, names registered with Network Solutions (the majority) will not show an email address for the owner! In that case, you should use the admin contact email address instead. If that proves invalid, email the technical contact instead.
Many resellers use their WHOIS entry to make it perfectly clear that the domain name is for sale. For example, they may list the site owner as "This domain is for sale" or similar. In this case, there is no need to send an email, the name is definitely for sale. You can skip to step #2.
When you send the email, keep it short and simple, remembering to use a generic email address, and don't give out your name or other contact details. Just say something like 'I am interested in purchasing the name SiteName.com. Please tell me if it is for sale, and if so, how much you are asking for it.'
If you get a negative reply, you will have to accept that this name isn't available. Otherwise, you're in business...
Step #2 - Set Yourself a Budget, and Stick To It!
Now that you have established the name is for sale, it's time to set yourself a purchase budget. Any given name is worth a different amount to each business that has a use for it. It's up to you to decide how much the name is worth to your business. This could be in terms of extra traffic, extra sales, prestige, or any other criteria.
You might try going to a professional domain appraisal service in order to get an independent valuation, but this should just be considered a ball-park figure. You certainly shouldn't feel compelled to come up with a budget that matches the valuation.
Once you have established your budget, it is very important to stick to it. Better to lose the name than to get carried away and pay way over the odds. There are always other names available.
Now that you have established the name is for sale, it's time to set yourself a purchase budget. Any given name is worth a different amount to each business that has a use for it. It's up to you to decide how much the name is worth to your business. This could be in terms of extra traffic, extra sales, prestige, or any other criteria.
You might try going to a professional domain appraisal service in order to get an independent valuation, but this should just be considered a ball-park figure. You certainly shouldn't feel compelled to come up with a budget that matches the valuation.
Once you have established your budget, it is very important to stick to it. Better to lose the name than to get carried away and pay way over the odds. There are always other names available.
Step #3 - Decide Where To Make An Offer, and Go For It!
There are many possibilities here, especially since some names will only available by contacting the owner directly, others will just be listed at Afternic, others will just be listed at GreatDomains, others will just accept offers via a form on their home page. Still others will be available for purchase through a number of sites. There are pros and cons to each purchase method:
Private Sale
Pros:
There are many possibilities here, especially since some names will only available by contacting the owner directly, others will just be listed at Afternic, others will just be listed at GreatDomains, others will just accept offers via a form on their home page. Still others will be available for purchase through a number of sites. There are pros and cons to each purchase method:
Private Sale
Pros:
Likely to take much less time than other methods. There's no middleman to take a commission.
Cons:
Cons:
Less easy to remain anonymous than other methods. You will have to arrange the transaction yourself - payment, escrow, domain transfer, registrar transfer.
Tips:
Tips:
Experienced resellers will rarely open the negotiations by naming a price. They will expect you to do that. If you can get the seller to name a price, chances are that you're dealing with a hobbyist rather than a professional reseller.
Use an escrow service when the deal is complete. It's much less risky than paying the buyer directly.
If you are inexperienced buying domains, you will probably save yourself time and money by using the services of an experience domain broker.
Negotiated Sale via GreatDomains
Pros:
Use an escrow service when the deal is complete. It's much less risky than paying the buyer directly.
If you are inexperienced buying domains, you will probably save yourself time and money by using the services of an experience domain broker.
Negotiated Sale via GreatDomains
Pros:
Easy to remain completely anonymous. No commission for buyers. GreatDomains lead you through the whole process.
Cons:
Cons:
You have to make the initial offer. The process can take many weeks.
Tips:
Tips:
Make a low initial offer. The seller will make a counter-offer. This sets the boundaries of the negotiations.
If the initial counter offer is way out of your price range, submit a new offer, just above your first offer. If the seller sticks with his high price, chances are that the name is priced too highly for your budget. If the seller drops his price considerably, you should be able to complete the deal.
Auction on Afternic
Pros:
If the initial counter offer is way out of your price range, submit a new offer, just above your first offer. If the seller sticks with his high price, chances are that the name is priced too highly for your budget. If the seller drops his price considerably, you should be able to complete the deal.
Auction on Afternic
Pros:
Transparent auction process. Afternic lead you through the whole process.
Cons:
Cons:
You have to be a member of Afternic to bid on a name, which requires you own a valid credit card. More problematical, the seller can see the date on which joined Afternic. Any experienced reseller will know that if you have just joined the community, then you are a site developer looking to bid on a single name. This is important information you are giving away.
The buyer pays the commission. As with all auctions, you can never be sure that other parties bidding on the name are genuinely interested in purchasing it. The process can take many weeks.
Final Tips
Finally, remember the three most important things when purchasing a domain name are:
Finally, remember the three most important things when purchasing a domain name are:
Remain anonymous until the latest possible moment. Stick to your budget. Give yourself two months from initial contact to finalization.
